purpose:&the aim of this study is to investigate the impact of ceo power on capital structure and firm performance, as well as the moderating role of ceo power in the relationship between capital structure and firm performance.
methodology:&methodologically, this research is descriptive-analytical and applied in purpose. the statistical population consists of companies listed on the tehran stock exchange during the period from 2014 to 2023. using a purposive sampling method, 95 companies were selected as the sample. data analysis was performed using eviews software version 13, and hypotheses were tested using a multivariate regression model based on panel data.
findings:&the findings indicate that capital structure has a negative and significant impact on firm performance. ceo power exhibits a positive and significant effect on the capital structure of firms. the direct effect of ceo power on firm performance is positive, but it is confirmed at the 10% significance level. furthermore, the interactive effect of ceo power and capital structure shows that ceo power moderates the relationship between capital structure and firm performance. specifically, in firms with powerful ceos, the positive relationship between capital structure and firm performance is weaker.
originality: this study specifically analyzes the simultaneous influence of ceo power and capital structure. the findings reveal that ceo power can weaken the relationship between these two variables. in addition to contributing to theoretical advancements, these results offer practical insights for managers, policymakers, and investors in optimizing financial and strategic decision-making. the study underscores the importance of considering managerial characteristics alongside financial policies to enhance corporate performance.